Playtech and Caliplay focus on Mexican efforts together

Playtech has released a new statement in which it has outlined its ongoing ambitions for the Mexican iGaming market with the company publishing a joint modus operandi statement with Caliplay, a subsidiary of Caliente, which covers a reviewed eight-year B2B partnership in the country.

Playtech and Caliplay find an amicable resolution for the Mexican market

Under the new terms, Playtech will hold a 30.8% equity interest in Caliente Interactive, a Caliplay subsidiary which is based in the United States. Playtech will also be entitled to receive dividends just like other Caliplay Interactive shareholders and it will further have the right to appoint a director to the company’s Board. Commenting on this opportunity, Playtech CEO Mor Weizer said:

"During the past nine years, we have worked closely with Caliplay to create a successful and rapidly growing digital business in Mexico. The revised arrangements mark the beginning of an exciting new chapter that will build on the impressive progress to date, to drive significant further growth for Cali Interactive in the future."

Meanwhile, Playtech will also receive $140m in cash from Caliente Interactive, which will happen over four years. This announcement effectively puts an end to the company’s temporary flare-up which saw the companies come clashing over what Playtech alleged were unpaid service fees.

Playtech is particularly keen to resolve any outstanding issue amicably as the company has a strong exposure to Mexico and Latin America, and the company is committed to maintain its strong positions locally with Caliente Interactive and Caliplay’s help.

At the time, Playtech said that Caliplay had failed to pay €150m in owed fees, but the matter has now been settled, given the fact that the two companies have agreed to continue on their eight-year partnerships.

However, in order for the new B2B arrangements to be officially recognized, they would need a final stamp of approval by antitrust authorities in Mexico.

Both companies are keen on maintaining their long-term relationship locally

In the meantime, Caliente Interactive, Caliplay and Playtech will now proceed with their current legal complaints against each other, although those are simply put on hold and not dismissed entirely.

Caliplay Chairman Emilio Hank was similarly welcoming of the news and the opportunity this new arrangement presented for his company.

"We are focused on growing Caliplay, leveraging our core strengths and Playtech's leading technology to broaden our geographical footprint, as we continue in our mission to give the best gaming experiences to our customers in Mexico and beyond," the executive said, confident in this renegotiated agreement.

Back in Europe, Playtech is also negotiating a potential sale of Snaitech to Flutter Entertainment.

Image credit: Playtech